3882 Federal Register / Vol. 63, No. 17 /Tuesday, January 27, 1998 / Notices

hormone concentrations, obtained from

blood samples, with respect to

reproductive status of male and female

monk seals, and other pinnipeds.

In compliance with the National

Environmental Policy Act of 1969 (42

U.S.C. 4321 et seq.), an initial

determination has been made that the

activity proposed is categorically

excluded from the requirement to

prepare an environmental assessment or

environmental impact statement.

Dated: January 21, 1998.

Ann D. Terbush,

Chief, Permits and Documentation Division,

Office of Protected Resources, National

Marine Fisheries Service.

[FR Doc. 98–1934 Filed 1–26–98; 8:45 am]

BILLING CODE 3510–22–F

CONSUMER PRODUCT SAFETY

COMMISSION

[CPSC Docket No. 98–C0004]

In the Matter of COA, Inc., a

Corporation; Provisional Acceptance

of a Settlement Agreement and Order

AGENCY: Consumer Product Safety

Commission.

ACTION: Provisional Acceptance of a

Settlement Agreement under the

Consumer Product Safety Act.

SUMMARY: It is the policy of the

Commission to publish settlements

which it provisionally accepts under the

Consumer Product Safety Act in the

Federal Register in accordance with the

terms of 16 CFR § 1118.20(e). Published

below is a provisionally-accepted

Settlement Agreement with COA, Inc., a

corporation, d/b/a Coaster Co. of

America ‘‘containing a civil penalty of

$300,000.’’.

DATES: Any interested person may ask

the Commission not to accept this

agreement or otherwise comment on its

contents by filing a written request with

the Office of the Secretary by February

11, 1998.

ADDRESSES: Persons wishing to

comment on this Settlement Agreement

should send written comments to the

Comment 98–C0004, Office of the

Secretary, Consumer Product Safety

Commission, Washington, D.C. 20207.

FOR FURTHER INFORMATION CONTACT:

Howard N. Tarnoff, Trial Attorney,

Office of Compliance and Enforcement,

Consumer Product Safety Commission,

Washington, D.C. 20207; telephone

(301) 504–0626.

SUPPLEMENTARY INFORMATION: The text of

the Agreement and Order appears

below.

Dated: January 20, 1998.

Sadye E. Dunn,

Secretary.

In the Matter of COA, INC., a Corporation

d/b/a Coaster Co. of America

Settlement Agreement and Order

1. This Settlement Agreement and

Order, entered into between COA, Inc.,

d/b/a Coaster Co. of America, a

corporation (hereinafter, ‘‘COA’’), and

the staff of the Consumer Product Safety

Commission (hereinafter, ‘‘staff’’),

pursuant to the procedures set forth in

16 CFR § 1118.20, is a compromised

resolution of the matter described

herein, without a hearing or

determination of issues of law and fact.

The Parties

2. The staff is the staff of the

Consumer Product Safety Commission

(hereinafter, ‘‘Commission’’), an

independent federal regulatory agency

of the United States government,

established by Congress pursuant to

section 4 of the Consumer Product

Safety Act (hereinafter, ‘‘CPSA’’), as

amended, 15 USC § 2053.

3. Respondent COA is a corporation

organized and existing under the laws of

the State of California with its principal

corporate offices located at 1298

Sandoval St., Santa Fe Springs, CA

90670. COA is an importer and

wholesaler of all types of home

furnishings and furniture, including

baby cribs.

Staff Allegations

4. Section 4(a) of the Federal

Hazardous Substances Act (hereinafter,

‘‘FHSA’’), 15 U.S.C. § 1263(a), prohibits

the introduction into interstate

commerce of any banned hazardous

substance.

5. Section 15(b) of the CPSA, 15

U.S.C. § 2064(b), requires a

manufacturer of a consumer product

who, inter alia, obtains information that

reasonably supports the conclusion that

the product contains a defect which

could create a substantial product

hazard or creates an unreasonable risk

of serious injury or death, to

immediately inform the Commission of

the defect or risk.

6. From approximately January 1993

through December 1996, COA imported

and introducted into interstate

commerce approximately 940 full-size

baby cribs, identified as model 2368.

7. From approximately June 1996

through April 1997, COA imported and

introduced into interstate commerce

approximately 900 full-size baby cribs,

identified as model 2364.

8. The staff inspected and evaluated

these 2 cribs and identified multiple

violations of the FHSA and its

regulations, Requirements for Full-Size

Baby Cribs, 16 CFR Part 1508 (crib

regulations). Any one of the FHSA

violations is sufficient to render each

crib to be a ‘‘banned hazardous

substance’’ under the FHSA and the

applicable crib regulation.

9. Specifically, model 2368 violated

the FHSA and its crib regulations at 16

CFR §§ 1508.4 (a) and (b) (spacing of

crib components); 16 CFR § 1508.6(b)

(requirements for hardware), and; 16

CFR §§ 1508.9(b)(2) and (d) (identifying

marks, warning statement, and

compliance declaration).

10. Specifically, model 2364 violated

the FHSA and its crib regulations at 16

CFR § 1508.4(a); 16 CFR § 1508.7(c)

(requirements for construction and

finishing), and; 16 CFR §§ 1508.9(b) (1)

and (2) and (c).

11. In addition, on or about August

21, 1996, COA received a test report on

a sample of model #2364 crib performed

by the Detroit Testing Laboratory, Inc.

(DTL) on August 20, 1996. DTL had

identified and listed substantially all of

the violations which the Commission’s

evaluations subsequently identified.

DTL also noted that the decorative ‘‘S’’

on the side rails may present a potential

for entrapment and strangulation. COA

knew or should have known of these

violations of the FHSA on or about

August 21, 1996, yet it failed to report

this to the Commission, as required by

section 15(b) of the CPSA. Further, it

continued to sell these cribs until at

least March 18, 1997.

12. Because these two cribs failed to

meet the Requirements for Full-Size

Baby Cribs, each of them is a ‘‘banned

hazardous substance’’ within the

meaning of section 2(q)(1)(A) of the

FHSA, 15 U.S.C. 1261 (q)(1)(A). The

introduction into interstate commerce of

these banned hazardous substances by

COA was a prohibited act pursuant to

section 4(a) of the FHSA and was

committed ‘‘knowingly’’, as that term is

defined in section 5(c)(5) of the FHSA,

15 U.S.C. 1264(c)(5).

13. Although COA had obtained

sufficient information to reasonably

support the conclusion that these cribs

contained a defect which could create a

substantial product hazard, or created

an unreasonable risk of serious injury or

death, it failed to report such

information to the Commission in a

timely manner, as required by section

15(b) of the CPSA. This is a violation of

section 19(a)(4) of the CPSA, 15 U.S.C.

§ 2068(a)(4).

14. Respondent’s failure to report to

the Commission, as required by section

15(b) of the CPSA, was committed

‘‘knowingly’’, as that term is defined in
Federal Register / Vol. 63, No. 17 /Tuesday, January 27, 1998 / Notices 3883

Section 20(d) of the CPSA, 15 U.S.C.

§ 2069(d) and COA is subject to civil

penalties under Section 20 of the CPSA.

Response of COA

15. COA denies each and all of the

staff allegations with respect to these

cribs.

Agreement of the Parties

16. The Commission had jurisdiction

in this matter.

17. Upon final acceptance of the

Settlement Agreement, COA, Inc. shall

pay to the Order of the U.S. Treasury a

civil penalty in the amount of three

hundred thousand and 00/100 dollars

($300,000.00) to be paid in three

installments of $100,000. The first

$100,000 payment will be due within

twenty (20) days after service upon

Respondent of the Final Order of the

Commission accepting this Settlement

Agreement. Thereafter, COA, Inc. agrees

to pay $100,000 within one hundred

and ten (110) days of the date of service

of the Final Order, and $100,000 within

two hundred (200) days of the first

payment. Payment of the total $300,000

civil penalty shall settle fully the staff’s

allegations set forth in paragraphs 4

through 14 of the Settlement Agreement

and Order. Upon the failure by COA,

Inc. to make a payment or upon the

making of a late payment (as determined

by the postmark on the envelope) by

CSA (a) the entire amount of the civil

penalty shall be due and payable, and

(b) interest on the outstanding balance

shall accrue and be paid at the federal

legal rate of interest under the

provisions of 28 U.S.C. §§ 1961 (a) and

(b).

18. COA knowingly, voluntarily and

completely waives any rights it may

have (1) to an administrative or judicial

hearing with respect to the

Commission’s claim for a civil penalty,

(2) to judicial review or other challenge

or contest of the validity of the

Commission’s action with regard to its

claim for a civil penalty, (3) to a

determination by the Commission as to

whether a violation of the FHSA or

section 15(b) of the CPSA, has occurred,

(4) to a statement of findings of fact and

conclusions of law with regard to the

Commission’s claim for a civil penalty,

and (5) to any claims under the Equal

Access to Justice Act.

19. This Settlement Agreement and

Order settles any allegations of

violations of the FHSA or of section

15(b) of the CPSA regarding the

products described above. 20. Nothing in this Settlement

Agreement and Order shall be construed

to preclude the CPSC from pursuing a

corrective action or other relief not

described above.

21. This Settlement Agreement and

Order becomes effective only upon its

final acceptance by the Commission and

service of the incorporated Order upon

Respondent. 22. Upon provisional acceptance of

this Settlement Agreement and Order by

the Commission, the Commission shall

place this Agreement and Order on the

public record and shall publish it in the

Federal Register in accordance with the

procedure set forth in 16 CFR

§ 1118.20(e). If the Commission does not

receive any written request not to accept

the Settlement Agreement and Order

within 15 days, the Agreement and

Order shall be deemed finally accepted

on the 16th day after the date it is

published in the Federal Register, in

accordance with 16 CFR § 1118.20(f).

23. Upon final acceptance of this

Settlement Agreement and Order, the

Commission shall issue the attached

Order, incorporated herein by reference. 24. The provisions of this Settlement

Agreement and Order shall apply to

COA and its successors and assigns. 25. For purposes of section 6(b) of the

CPSA, 15 U.S.C. § 2055(b), this matter

shall be treated as if a complaint had

issued, and the Commission may

publicize the terms of the Settlement

Agreement and Order. 26. COA agrees to immediately inform

the Commission if it learns of any

incidents involving the products and

alleged defects identified above. 27. This Agreement may be used in

interpreting the Order. Agreements,

understandings, representations, or

interpretations made outside of this

Settlement Agreement and Order may

not be used to vary or to contradict its

terms.

COA, Inc.

Dated: December 11, 1997.

Michael Yeh,

President of COA, Inc.

The Consumer Product Safety Commission.

Alan H. Scheom,

Assistant Executive Director, Office of

Compliance.

Eric L. Stone,

Director, Division of Administrative

Litigation, Office of Compliance.

Dated: December 17, 1997.

Melvin I. Kramer,

Trial Attorney, Division of Administrative

Litigation, Office of Compliance.

In the Matter of COA, Inc., a Corporation

d/b/a Coaster Company of America

Order

Upon consideration of the Settlement

Agreement between Respondent COA,

Inc., a corporation, d/b/a Coaster

Company of America and the staff of the

Consumer Product Safety Commission,

and the Commission having jurisdiction

over the subject matter and over COA,

Inc., and it appearing the Settlement

Agreement is in the public interest, it is

Ordered, that the Settlement

Agreement be and hereby is accepted,

and it is

Further ordered, that upon final

acceptance of the Settlement

Agreement, COA, Inc. shall pay to the

Order of the U.S. Treasury a civil

penalty in the amount of three hundred

thousand and 00/100 dollars

($300,000.00) to be paid in three

installments of $100,000. The first

$100,000 payment will be due within

twenty (20) days after service upon

Respondent of the Final Order of the

Commission accepting this Settlement

Agreement. Thereafter, COA, Inc. shall

pay $100,000 within one hundred and

ten (110) days of the date of service of

the Final Order, and $100,000 within

two hundred (200) days of the first

payment. Payment of the total $300,000

civil penalty shall settle fully the staff’s

allegations set forth in paragraphs 4

through 14 of the Settlement Agreement

and Order. Upon the failure by COA,

Inc. to make a payment or upon the

making of a late payment (as determined

by the postmark on the envelope) by

CSA: (a) The entire amount of the civil

penalty shall be due and payable, and

(b) interest on the outstanding balance

shall accrue and be paid at the federal

legal rate of interest under the

provisions of 28 U.S.C. §§ 1961 (a) and

(b).

Further ordered, COA, Inc. shall

immediately inform the Commission if

it learns of any incidents involving the

products and alleged defects identified

herein.

Provisionally accepted and Provisional

Order issued on the 20th day of January,

1998.

By Order of the Commission.

Sadye E. Dunn,

Secretary, Consumer Product Safety

Commission.

[FR Doc. 98–1821 Filed 1–26–98; 8:45 am]

BILLING CODE 6355–01–M